Matera Announces $100M Investment From Warburg Pincus

Matera, a leading banking software provider, today announced a $100 million investment from Warburg Pincus, a leading global growth investor. The investment will be used to fund the company’s expansion into the North American market and further expand product development.

Founded in Brazil, Matera is a trusted technology provider of core banking, instant payment, and QR code payment solutions for financial institutions, backed by over 30 years of experience in providing best-in-class software solutions.

With offices in the United States and Brazil, the company’s core offering is a mission-critical suite of modern technology solutions used by more than 250 banks, credit unions and financial institutions globally, including two of the top three banks in the world and over one-third of all banks in Brazil. This investment comes at a moment of significant growth for Matera, the company has grown 4x since 2020, achieving $77 million in revenue for 2023, while maintaining a strong profitability profile.

Matera is the pioneer provider of next-generation software enabling real-time payments in Brazil, a country which is a global standard when it comes to payments infrastructure, led by a long-standing innovative central bank agenda. In Brazil, Central Banks’ real-time payments rails (“PIX”) already accounts for over 40% of all electronic transactions in the country, and Matera’s solution alone processes over 5 billion transactions a year. Nearly half of those are initiated by scanning a QR Code.

The company expanded into North America with solutions centered around the same principles, leveraging their multi-decade expertise in banking software. Matera’s flagship offering for North America is called Digital Twin, a next-generation, high-performance ledger built to work on top of bank’s existing core platforms to enable them to solve two of their biggest pains: core banking modernization and creating real-time digital user experiences despite an inflexible legacy infrastructure. They’re also offering their QR Code payments solution that enables billers and merchants to present QR Codes to be paid by mobile phone. It also powers consumers to generate QR Codes from a mobile app to make payments.

“PIX set the standard for the digital finance revolution. At Matera, we know first-hand the pressure for banks to modernize their infrastructure to keep up with innovative new payment methods such as instant payments and pay-by-bank. We’re honored to leverage our PIX expertise with proven solutions to help financial institutions across North America keep pace with their customers’ digital demands,” said Carlos Netto, Co-Founder & CEO of Matera.

“We have been closely tracking Matera as PIX emerged in Brazil and have seen first-hand their ability to innovate and deliver world-class, mission-critical software that is both scalable and consistent. We now look forward to expanding this expertise into North America where we see immense opportunity for Digital Twin to help banks seamlessly modernize their core systems,” said Henrique Muramoto, Managing Director at Warburg Pincus. “We are excited to partner with Carlos and the Matera team in their next phase of growth.”

Warburg Pincus is one of the most active growth investors in enterprise technology and cloud-based platforms, investing over $33 billion in technology companies and over $16 billion in financial services companies since inception.

Bank of America and Freitas Leite acted as advisors to Matera in this transaction.